Zimbabwe’s reform deadlock threatens debt resolution prospects

LIVINGSTONE MARUFU AND CLOUDINE MATOLA

Zimbabwe’s failure to implement comprehensive governance reforms has derailed progress in the arrears clearance and debt resolution, threatening its reengagement with international financial markets.

With a staggering US$21bn in debt- a US$13bn external and US$8bn domestic- the government’s reform inertia risks prolonging its financial isolation.

Despite strides in economic stability and land tenure reforms, governance issues remain a critical bottleneck in unlocking concessionary external funding.

African Development Bank  (AfDB) president Dr Akinwumi Adesina and former Mozambican President Joaquim Chissano, champions of Zimbabwe’s debt dialogue, have expressed concerns over Harare’s lack of political will to deliver governance reforms.

They caution that this impasse could delay the structured dialogue’s conclusion, initially targeted for 2025.

The lack of political will on governance issues jeopardises structured dialogue deadlines, raising fears that Harare’s current trajectory could cement its status as a pariah state.

The United States of America, a key player in the debt talks shares these same concerns.

Dr Adesina highlighted that Zimbabwe’s path to financial stability and debt resolution hinges on implementing necessary reforms.

He said the progress on governance would be assessed by three internationally recognised institutions.

“It was agreed that benchmarking of the progress on governance should be conducted by three globally respected and independent organisations – the World Justice Project, the Mo Ibrahim Index on African Governance; and Transparency International Corruption Perception.

These have been done.

The World Justice Report and the Mo Ibrahim Index on African Governance were published on 23 October, 2024. There has not been a deterioration in the overall scores from the 2019 baseline on both assessments. The Ibrahim index showed a slight improvement. Of the 15 indicators measured by the World Justice Report, 7 out 16 showed improvements, while 9 out of 16 declined. There is still room for improvements,” Dr Adesina said.

Chissano emphasised that governance reforms  are aligned with the National Development Srategy (NDS1) and are focused in 6 areas namely enhancing, justice delivery, public sector transparency and accountability combating corruption, promotion of human rights, electoral reforms and national unity, peace and security.

“16 sub indicators have been chosen with measurement of performance to be made based on three internationally recognized standards adopted notably the Mo Ibrahim index, the rule of law index, and the corruption perception index. Measurement made this year points to mixed results with the trajectory registering a setback as six sub indicators recorded a positive performance while nine had a negative one. Further work is needed to reverse this outcome,” he said.

Chissano also stressed that Zimbabwe’s re-engagement with development partners has been productive, enabling open discussions on reforms needed for debt clearance.

However, he urged the government to improve coordination in the dialogue process and address the negative results from the recent  performance indicators.

He specifically recommended further consultations on the Private Voluntary Organisation (PVC) Bill to ensure broader stakeholder engagement.

“The progress registered so far is remarkable. However, there are challenges that remain to be addressed.

 We would like to advise the government to enhance coordination of the dialogue process on the three pillars to ensure the speedy implementation of reforms and commitment made.

 On the other hand, there is a need to evaluate why nine sub-indicators registered a negative measurement this year and what needs to be done to reverse this negative assessment.

We would like to recommend in particular that the Private Voluntary Organisation [PVO] bill be subjected to further engagement with civil society organizations with a view to ensuring that the concerns of all stakeholders are duly considered,” Chissano said.

He further noted that the government alone cannot implement all the reforms without external support and called for multi-lateral  institutions to assist with social progress for vulnerable populations.

Ambassador of the United States to Zimbabwe Pamela Tremont   also raised concerns.

“A lot of work needs to be done with regards to reforms that all parties agreed to. The United States of America’s participation  shows its commitment to the Zimbabwean people.

We have been supporting Zimbabwe for 40 years where we invested over US$5bn in its welfare and Zimbabwean people.

We are advocating for the reforms  that the international community have been  calling for for many years. It is quite clear that we need public efficiency as  the office bearers use their spaces for private gains. We need the judiciary to be able to deliver justice and we want free speech to be fully respected,” Tremont said.

President   Emmerson Mnangagwa defended his administration’s reform progress, asserting that significant strides have been made in economic and legal reforms.

“To anchor implementation of further economic reforms under the Arrears Clearance and Debt Resolution Process, the government is currently negotiating a Staff Monitored Programme with the International Monetary Fund.

The implementation of any reforms under SMP, however, negatively impacts groups of  our population.

In this regard, the protection of the vulnerable groups, through effective social protection programmes is of  critical importance to my Government.

The Government and the people of Zimbabwe deem it, in their  fundamental  interest and  part  of their national character, to consolidate constitutionalism, the rule of law, good governance and the protection of constitutionally enshrined rights and freedoms.

Governance reforms are, therefore, guaranteed under the Second Republic,” President Mnangagwa said.

He added: “The fight against this is being strengthened  with the anticipated enactment of Whistleblower Protection Bill, Witness Protection Bill, Anti-Corruption  Amendment Bill and Assets  and Conflict of Interest Bill.

Further, the PVO Bill, is expected to enhance transparency and accountability within that sector,  while also augmenting our fight to prevent the financing of terrorism and money laundering through PVOs.

Inorder to improve the human rights environment in the country, the Abolition of the Death Penalty Bill is undergoing  Parliamentary approval processes.

The Zimbabwe Human Rights Commission has been decentralised,” he said.

Finance Minister, Professor Mthuli Ncube expressed optimism about the timelinefor the  Staff Monitored Programme (SMP), aiming for completion by 2025, which aligns with the National Development Strategy 1 (NDS 1).

“Next year, key milestones will include launching the SMP in January, reviewing progress in July, and making necessary adjustments by September,” he said.